KARACHI: The KSE-100 index sank 495 points in the first 30 minutes of trading on Tuesday as nervous investors ran for cover following the arrest of CEO and two directors of a major brokerage AKD Securities the night before. But sanity soon returned and investors’ were attracted by the enticing valuations.
As the fear of a further fall dissipated, it dawned upon the individuals and institutions that nothing had fundamentally gone wrong with the corporates and their earnings. The stocks bounced back and settled just 25.66 points (0.08 per cent) down at 32,983.47.
Overall the market saw volatility of 1,300 points during the day.
Traded volume increased 30pc to 142.4m shares and value increased 35pc to Rs8.5bn. Foreign investors took advantage of the low prices and made net purchases of $2.58m.
“Index recovered on the back of cement and auto sector stocks,” said dealers at Topline Securities.
Announcement of price increase of Rs5,000-15,000 by Pak Suzuki Motor Company (PSMC) attracted investors’ interest in the auto sector. PSMC gained 2.4pc.
Upcoming projects under CPEC and expectation of better-than-anticipated sales growth kept cement sector in the limelight. Maple Leaf Cement increased 1.4pc and D.G. Khan Cement by 1pc.
Dealers on sales desk of Global Securities said that E&P remained depressed due to plunge in WTI and Brent prices.
BAHL (2.31pc), FEROZ (5pc) and NML (2.37pc) were big gainers, while HUBC (1.25pc), PSO (2.04pc), PPL (1.28pc) and FATIMA (2.85pc) were major losers.
Brokerage Intermarket Securities cautioned that overall sentiments in the market continued to remain weak and advised investors to stick to sidelines for the time being.